Textile firm Alok Industries' retail venture Alok Retail India is in the last leg of raising finance from private equity players, a top company official said.
“We will be signing the agreement by end-this month. The funds will be raised in two tranches. We will announce the exact amount to be raised soon,” Alok Retail's Director Varun S Jiwrajka told PTI here today.
He, however, did not disclose the name of the PE firm the company has identified for the deal or the amount to be raised.
Soon after sealing this deal, Alok Retail, the holding company of its retail chain H&A, would be rechristened AlokH&A and it would transform into a pure cash-and-carry business.
The company has drawn up a massive expansion plan with a view to achieve a pan-India footprint and is eyeing a 1,000-strong retail network in the next three-years. The stores would all be on the franchise model, he said.
“At present, we have 150 stores which we plan to scale up to 250 by end-this fiscal (FY10). By end-next fiscal, we plan to add 250 more outlets,” Jiwrajka said, adding that after FY11, the company plans to add 500 stores each year.
Alok Retail also plan to launch four to five private labels by next fiscal. Currently, it has nine labels, including Cotton Island, Cotton Ova and Urban Legend (for men), Side FX and Edition (women), Vintage Angels and Vintage Warriors for kids, Reflections in the home furnishing segment and Xtensions in accessories.
The company also plans to expand its floor area from 800 sq ft now to very large-format lifestyle stores spread across 2,000-2,500 sq ft, Jiwrajka said.
In view of the growth in consumption in apparel and home segment, the company is expecting to triple its turnover to Rs 24 crore this fiscal.
“With our agressive expansion plans and brand-building activities, we are expecting to to break-even in FY11,” Jiwrajka said.
The company is launching an agressive brand-promotion activity in the next six-months and is likely to rope in a celebrity as H&A's brand ambassador.
Source: Business Standard